Iraq’s oil exports passed 2 million barrels a day for the first time since the Iran War started in February. This was accomplished by drastically reducing prices and making a deal with Iran to allow ships carrying Iraqi petroleum through the Strait of Hormuz.
In August Iraq sold an average of 2.377 million barrels a day in oil. That was up from 1.586 million in July and just 816,000 barrels in June. Exports collapsed in March after the Iran War started hitting a low of just 246,000 barrels in May. Since then levels have increased every month.
That meant an increase in revenues as well. In August Iraq made $4.452 billion from its exports. The month before it earned $3.145 billion, $1.499 billion in June and $836.7 million in May.
This was the result of two actions. First the Oil Ministry was selling Iraqi crude at deep discounts to attract buyers. In April prices were $25 per barrel below the Brent price. That fell to $32 below Brent in August.
Second Iraq made a deal in March with Iran to allow tankers carrying its oil through the Strait of Hormuz for a fee. An economist estimated this cost Baghdad $1.3 billion in August. That was around a quarter of the total revenue for the month.
This is a huge hit for the country’s budget which relies upon oil earnings for up to 90% of its funding.
With the Iran War constantly flaring up there’s no telling whether Iraq can continue to raise its exports. With Iran charging so much for passage through the Strait of Hormuz it also means that the government is still not making enough to meet its obligations and will continue to go into debt as a result.
Federal Oil Exports, Prices, Revenues 2021-2024
|
Month |
Avg Export (Mil) |
Earnings (Bil) |
|
Jan 2023 |
3.266 |
$7.663 |
|
Feb |
3.184 |
$7.081 |
|
Mar |
3.255 |
$7.506 |
|
Apr |
3.288 |
$7.699 |
|
May |
3.305 |
$7.325 |
|
Jun |
3.335 |
$7.115 |
|
Jul |
3.444 |
$8.294 |
|
Aug |
3.423 |
$8.998 |
|
Sep |
3.438 |
$9.422 |
|
Oct |
3.534 |
$9.594 |
|
Nov |
3.433 |
$8.482 |
|
Dec |
3.486 |
$8.311 |
|
2023 Avg |
3.365 |
$8.124 |
|
Jan 2024 |
3.339 |
$8.026 |
|
Feb |
3.434 |
$7.96 |
|
Mar |
3.423 |
$8.65 |
|
Apr |
3.413 |
$8.75 |
|
May |
3.359 |
$8.14 |
|
Jun |
3.41 |
$8.25 |
|
Jul |
3.486 |
$9.08 |
|
Aug |
3.414 |
$8.49 |
|
Sep |
3.31 |
$7.11 |
|
Oct |
3.327 |
$7.47 |
|
Nov |
3.296 |
$7.01 |
|
Dec |
3.259 |
$7.15 |
|
2024 Avg |
3.372 |
$8.00 |
|
Jan 2025 |
3.298 |
$7.47 |
|
Feb |
3.398 |
$6.7 |
|
Mar |
3.441 |
$7.717 |
|
Apr |
3.365 |
$6.738 |
|
May |
3.278 |
$6.362 |
|
Jun |
3.296 |
$6.698 |
|
Jul |
3.379 |
$7.185 |
|
Aug |
3.381 |
$7.160 |
|
Sep |
3.405 |
$6.962 |
|
Oct |
3.578 |
$7.031 |
|
Nov |
3.553 |
$6.595 |
|
Dec |
3.473 |
$6.388 |
|
2025 Avg |
3.404 |
$6.917 |
|
Jan 2026 |
3.471 |
$6.485 |
|
Feb |
3.567 |
$6.815 |
|
Mar |
0.600 |
$1.957 |
|
Apr |
0.329 |
$1.087 |
|
May |
0.246 |
$0.836 |
|
Jun |
0.816 |
$1.499 |
|
Jul |
1.586 |
$3.145 |
|
Aug |
2.377 |
$4.452 |
SOURCES
Iraq Oil Report, “Pricing discounts drive August oil export surge,” 9/10/26
No comments:
Post a Comment